In a conference call with investors, Bell’s chief executive officer Mirko Bibic described the TowerCo transaction as a way to “surface significant value from our passive wireless infrastructure” while providing financial flexibility to strengthen the balance sheet and invest in growth opportunities
In sum – what to know
Tower assets monetized – La Caisse will acquire a 49.9% stake in Bell’s newly formed wireless tower company, TowerCo, for CAD 2.45 billion. Bell will retain control.
Subscriber quality prioritized – Bell added just over 24,000 postpaid mobile phone customers in Q3, while churn improved to 1.06%, its lowest third-quarter level since Q3 2022.
Revenue recovery targeted – Wireless service revenue declined 1.3% year over year and ARPU fell 1.7%. Bell expects growth in both by mid-2027 if improving pricing momentum continues.
Bell is combining a major transaction involving its wireless infrastructure with a strategy focused on improving the economics of its mobile business. The Canadian operator added just over 24,000 postpaid mobile phone customers in the third quarter of 2026, while announcing that La Caisse will acquire a stake in its newly formed wireless tower company.
Under the agreement announced at the end of October, La Caisse will acquire a 49.9% stake in TowerCo for CAD 2.45 billion ($1.73 billion). The purchase price implies a valuation of approximately CAD 4.91 billion, according to Bell’s chief financial officer Curtis Millen. The transaction is expected to close in the first quarter of 2027.
Bell will retain control of the business and its network. In a conference call with investors, the telco’s chief executive officer Mirko Bibic described the transaction as a way to “surface significant value from our passive wireless infrastructure” while providing financial flexibility to strengthen the balance sheet and invest in growth opportunities.
The transaction also provides additional flexibility to fund key growth areas, including AI-powered solutions.
Bell prioritizes customer value over subscriber volume
On the wireless front, Bell’s strategy is increasingly focused on attracting higher-value customers rather than maximizing additions through promotional offers.
“We’re choosing quality over volume,” Bibic said, explaining that Bell competes on its network, service, and fiber and mobility bundles. The company’s focus remains on attracting higher-value customers, improving handset economics and building profitable long-term customer relationships.
Bell recorded just over 24,000 postpaid mobile phone net additions in Q3, including customers onboarded under a government sector contract. Bibic said more than 100% of net additions came through the Bell brand, across consumer and enterprise segments, as the company continues to de-emphasize its flanker brand.
Postpaid churn improved seven basis points year over year to 1.06%, its lowest third-quarter level since Q3 2022. Bibic attributed the improvement to the company’s focus on customer service and retention, noting that it was achieved while Bell pulled back on promotional offers. He also pointed to digital transformation investments made over several years as contributing to improved churn.
Bibic said Bell does not intend to pursue subscriber additions through short-term discounting. “We’re not here to maximize gross adds through short-lived promotional pricing,” he said. He added that the company’s approach is based on higher transaction quality offsetting declining net additions, with ARPU growth having a higher EBITDA flow-through than subscriber growth.
Wireless revenue recovery remains a work in progress
Despite improvements in customer economics, Bell’s wireless service revenue remained under pressure. It declined 1.3% year over year in Q3. Blended ARPU declined 1.7% year over year.
Management pointed to improving pricing trends during the second and third quarters. “If that momentum continues, we would expect to see wireless service revenue and ARPU growth by mid-2027,” Millen said.
Table of Contents
